Delays in Washington D.C. sports betting expansion: BetMGM, Caesars, and FanDuel in limbo

The anticipated launch of BetMGM and Caesars Sportsbook in Washington D.C. has hit a significant snag due to unresolved budget approval issues. The situation remains unchanged as of early Wednesday morning, July 17, 2024, with both platforms restricted to their respective brick-and-mortar locations and FanDuel halting its citywide online operations.

Budget Approval Issues Stall Sports Betting Expansion

FanDuel, currently the only online platform offering citywide sports gambling in D.C., stopped accepting bets on Tuesday. The halt came because Mayor Muriel E. Bowser had not signed the city’s budget for the 2025 fiscal year, which includes provisions for the continuation and expansion of sports betting. “FanDuel will resume sports betting operations in the city upon final approval of the FY2025 DC Budget,” the company stated to The Washington Post.

Mayor Bowser’s office clarified that she had returned the budget to the D.C. Council without her signature or a veto, effectively allowing the sports gambling provisions to take effect immediately. Despite this, FanDuel had not resumed its online operations by Tuesday evening, leaving bettors and industry stakeholders in a state of uncertainty.

Impact on BetMGM and Caesars Sportsbook

The budget delay has also affected BetMGM and Caesars Sportsbook, which were set to launch district-wide on July 15. BetMGM’s app continues to restrict bets to within a two-block radius of Nationals Park, where the company has a physical sportsbook. A planned promotional event for BetMGM’s expanded D.C. offerings was canceled, and the company stated that the initiative is “in a pause.” Similarly, Caesars Sportsbook, which operates a brick-and-mortar location at Capital One Arena, remains limited to that area.

Legislative and Market Dynamics

The confusion stems from the complex legislative and contractual dynamics involving the D.C. sports betting market. GambetDC, the city’s initial attempt at a mobile sports betting app, was a dismal failure, bringing in only $4.3 million over four years—well short of the projected $84 million. In April, FanDuel replaced GambetDC, generating $1.9 million in its first 30 days alone (Yogonet).

The new budget, which allows up to seven licenses for sports betting, was supposed to create a more competitive market. However, in a letter to Council Chair Phil Mendelson, FanDuel President Christian Genetski expressed concerns about the market opening to other companies, hinting that FanDuel might terminate its contract with Intralot and operate independently under the new framework.

Statements and Reactions

Kenyan R. McDuffie, a D.C. Council member, criticized the Office of Lottery and Gaming for prematurely releasing Intralot from its sports betting responsibilities, adding to the confusion. “Once again, the Office of Lottery and Gaming has created unnecessary confusion by prematurely releasing the contractor from their responsibilities. The Mayor is reviewing the budget, and we expect this to be resolved soon,” McDuffie said in a statement to The Washington Post.

Current Status and Next Steps

As of early Wednesday morning, July 17, 2024, the situation remains unchanged. FanDuel’s brick-and-mortar sportsbook at Audi Field continues to accept wagers, but its online operations are paused. BetMGM and Caesars Sportsbook have not provided timelines for when their citywide mobile betting services will commence.

The D.C. sports betting community eagerly awaits the resolution of these issues, hoping for a swift implementation of the expanded sports betting services promised by the new budget.

Stay tuned for further updates as this situation develops.